Meet the millionaire who's helping to save Flint

Phil Hagerman, CEO of Skypoint Ventures poses for a photo in The Ferris Wheel Building in downtown Flint on Wednesday, February 27, 2019. Hagerman invested $7.5 million in refurbishing the seven-story The Ferris Wheel Building as a hub for young businesses and 100K ideas, a non-profit idea factory based in that building.

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??Ryan Garza, Detroit Free Press

Phil Hagerman, CEO of Skypoint Ventures talks with a representative from XLerate Health during a meeting in a conference room at The Ferris Wheel Building in downtown Flint on Wednesday, February 27, 2019. Hagerman invested $7.5 million in refurbishing the seven-story The Ferris Wheel Building as a hub for young businesses and 100K ideas, a non-profit idea factory based in that building.

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The Ferris Wheel Building in downtown Flint is seen on Wednesday, February 27, 2019. The seven-story building opened in November 2017 as a new hub for young businesses.

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??Ryan Garza, Detroit Free Press

The Ferris Wheel Building in downtown Flint is seen on Wednesday, February 27, 2019. The seven-story building opened in November 2017 as a new hub for young businesses.

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Brandee Cook-Brown 100K Ideas Director of Community Engagement and 100K Ideas Project Manager and Industrial Designer Kevin Conner chat at The Ferris Wheel Building in downtown Flint on Wednesday, February 27, 2019.

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People walk passed the desk for 100K Ideas non-profit idea factory located in The Ferris Wheel Building in downtown Flint on Wednesday, February 27, 2019.

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Business ideas are seen placed along their stage of development at the 100K Ideas station in The Ferris Wheel Building in downtown Flint on Wednesday, February 27, 2019.

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People speak in an office at 100K Ideas located inside The Ferris Wheel Building in downtown Flint on Wednesday, February 27, 2019.

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Wes Stoody CEO of Article One and his sister Maggie Stoody Vocos, Creative Director, of Article One pose for a photo in their space located in the Dryden Building in downtown Flint on Wednesday, February 27, 2019. Stoody moved back from Chicago to start the eyewear company that they sell through independent businesses nationwide with his sister.

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Eyewear from Article One is seen at the business located in the Dryden Building in downtown Flint on Wednesday, February 27, 2019.

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Kiara Tyler, CEO/Founder, Kalm Clothing does an inspection on clothing from her high-end street wear fashion line before delivering online orders from her office in The Ferris Wheel in downtown Flint on Wednesday, February 27, 2019.

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Kiara Tyler, CEO/Founder, Kalm Clothing does an inspection on clothing from her line before delivering online orders from her office in The Ferris Wheel in downtown Flint on Wednesday, February 27, 2019.

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??Ryan Garza, Detroit Free Press

People work on the main floor of The Ferris Wheel Building in downtown Flint on Wednesday, February 27, 2019.

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Phil Hagerman, CEO of Skypoint Ventures talks about a photo of Saginaw Street in downtown Flint from 1936 that includes the Ferris Wheel Building that was formerly the Ferris Bros. Furs that hangs on the wall of the business in downtown Flint on Wednesday, February 27, 2019.

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A man walks past pop-up shops inside the Dryden Building in downtown Flint on Wednesday, February 27, 2019.

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??Ryan Garza, Detroit Free Press

A man walks past the modern lobby of the Dryden Building in downtown Flint on Wednesday, February 27, 2019.

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??Ryan Garza, Detroit Free Press

Foster Coffee Co. Assistant Manager Cameron Morin helps a customer at the business located on the first floor of The Ferris Wheel Building in downtown Flint on Wednesday, February 27, 2019. The seven-story building opened in November 2017 as a new hub for young businesses.

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David Ollila, 49, President and Chief Innovation Officer of Skypoint Ventures discusses his businesses in a conference room at the Dryden Building in downtown Flint on Wednesday, February 27, 2019.

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Bunny wallpaper is seen on the pillars as remnants of J.C. Penney circa 1940 in the space being transformed into a music venue named The Ignition Room in the Dryden Building in downtown Flint on Wednesday, February 27, 2019. The space, scheduled to open in September 2019, is to be compared to Saint Andrews Hall in downtown Detroit.

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The lobby of Skypoint Ventures office space in the Dryden Building in downtown Flint is seen on Wednesday, February 27, 2019.

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??Ryan Garza, Detroit Free Press

Space that was once a post office in the Dryden Building in downtown Flint is being transformed into a music venue named The Ignition Room in the Dryden Building. The space, scheduled to open in September 2019, is to be compared to Saint Andrews Hall in downtown Detroit.

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??Ryan Garza, Detroit Free Press

Space that was once a post office in the Dryden Building in downtown Flint is being transformed into a music venue named The Ignition Room in the Dryden Building. The space, scheduled to open in September 2019, is to be compared to Saint Andrews Hall in downtown Detroit.

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??Ryan Garza, Detroit Free Press

Office spaces in the Skypoint Ventures floor of the Dryden Building in downtown Flint are seen on Wednesday, February 27, 2019.

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??Ryan Garza, Detroit Free Press

The modern lobby of the Dryden Building in downtown Flint on Wednesday, February 27, 2019.

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Office spaces in the Skypoint Ventures floor of the Dryden Building in downtown Flint are seen on Wednesday, February 27, 2019.

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Lounge area in the Skypoint Ventures floor of the Dryden Building in downtown Flint are seen on Wednesday, February 27, 2019.

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Phil Hagerman, CEO of Skypoint Ventures discusses his plans for helping develop downtown Flint at the Dryden Building in downtown Flint on Wednesday, February 27, 2019. Hagerman invested $7.5 million in refurbishing the seven-story The Ferris Wheel Building in downtown Flint as a hub for young businesses and 100K ideas, a non-profit idea factory based in that building.

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Pop-up shops inside the Dryden Building in downtown Flint on Wednesday, February 27, 2019.

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??Ryan Garza, Detroit Free Press

Office spaces in the Skypoint Ventures floor of the Dryden Building in downtown Flint are seen on Wednesday, February 27, 2019.

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Some of the original architecture of the Dryden Building remain in an office of the building in downtown Flint on Wednesday, February 27, 2019.

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??Ryan Garza, Detroit Free Press

Phil Hagerman (left), CEO of Skypoint Ventures and David Ollila, 49, President and Chief Innovation Officer of Skypoint Ventures discuss their businesses in at the Dryden Building in downtown Flint on Wednesday, February 27, 2019.

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Kiara Tyler, CEO/Founder, Kalm Clothing poses for a photo amongst packages of apparel to inspect before delivering online orders from her office in The Ferris Wheel in downtown Flint on Wednesday, February 27, 2019. "I decided to come home because I couldn't find a job, period. The information, training and coaching you'd normally get in business school I was able to get here in a couple months.

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A view of Saginaw Street in downtown Flint looking to the north from the Dryden Building on Wednesday, February 27, 2019.

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At age 5, Phil Hagerman started stacking soda bottles for 2-cent deposits at the family pharmacy in Flint, Mich. While other children watched cartoons on Saturday mornings, the little boy joyfully went to work with his father.

After a stint at Ferris State University just two hours west, Hagerman returned to the bedroom community of nearby Fenton, where everything began. He partnered with his father and built a health care network?specializing in complex diseases such as cancer and multiple sclerosis. Their private company went public and made a fortune.

All those millions? He takes abandoned buildings rich in history and brings them back to life. He invests in young people launching companies. He makes dreams come true.

Some think of him as?the angel investor of Flint.

“We know he could pack up and go anywhere,” said Flint Mayor Karen Weaver, a clinical psychologist. “He could do what he does anyplace else and he has chosen to be here. That shows his commitment to Flint."

Since the family company,?Diplomat Pharmacy,?began selling stock to the public in 2014, the newly created Hagerman Foundation?gave?more than $15?million?to 48?projects almost exclusively benefiting children and families?in Flint or its Genessee County.

“Some people give money, but he gives the trifecta: time, talent and treasure. Phil is a regular human being all while being a giant amongst us. We’re watching history," said?Isaiah Oliver, president and CEO of the Community Foundation of Greater Flint.

Outside Flint, few people may recognize the name Phil Hagerman.?The man known for his gentle smile and sense of grace is 66. He avoids the spotlight. He prefers not to talk about himself. He drives a Chrysler minivan.?

"I have always driven minivans and friends laugh at me that it is not a sports car or hip, but I like the ease and simplicity of it," Hagerman said.

He?retired a year ago from Diplomat but remains chairman emeritus and a member of the board.?He?confirmed he maintains ownership of about 20 percent of the?company, valued at more than $400 million.

Hagerman quickly changes the subject away from money. He's?eager to spotlight?others in town.?He reluctantly acknowledges that people often ask why he hasn't moved away.

He?can't imagine living in a big city like nearby Detroit.

He would rather invest in?the people of?Flint. The stories are endless.

Big money in a small town

Wes Stoody came home?from Chicago five?years ago to launch an eyewear company with his sister. They'll see an estimated?$1.5 million in sales after just four?years in business.

“Being in New York or Chicago or L.A., we would’ve been just another fashion brand located in those cities. Here, we’ve been able to collaborate with people in Flint who help us grow,” said Stoody, 30, CEO of Article One.

Their company is named for Article 1?of the Universal Declaration of Human Rights, which states that all humans are created free and equal in dignity and rights,?Stoody explained. The company has donated more than $17,000 to Helen Keller International. “We want to do good.”

The company has?been featured in Outside and Runner’s World magazines, with more to come.

"We definitely credit Phil," Stoody said. "His investment as a partner and his guidance as a mentor have been invaluable."

Working out of a car trunk

Kiara Tyler, 26, is a college track and field scholar who earned a degree in political science and now runs a “high-end streetwear” fashion company called Kalm Clothing. Having once worked out of her car trunk from home in Flint, she saw first-year sales of about $100,000.?Tyler sources her fabric from Pakistan, running a business for two years?with her cell phone – no laptop.

Today, she works in a refurbished building that Hagermen invested $7.5 million in so it could open as a hub for young businesses in November 2017.

"I want to be the next Ralph Lauren," Tyler said. "It’s just about perseverance.”

Flint lost a lot of great young talent like Tyler, Hagerman said. “Talent is dispersed equally around the world, but opportunity is not."

He went on, "People in Flint, Michigan, have incredible grit. It’s people working together in a tough community. Flint has been at the top of the world and at the bottom of?the world. The?people of Flint are resilient, they are positive and they refuse to give up.”

'It was almost scary'

After the Great Recession, when everyone else left town, Hagerman and his company didn't just stay. They expanded.?

"The city embraced me in a way that I could never imagine,"?Hagerman said. "Flint was maybe not at the bottom, but pretty darn close.

"I convinced the state of Michigan that for some tax credits that I could hire 1,000 people in five years, and I did. The community believed in me. They supported me in a way that was almost scary at first. It’s like, wait a minute, I’m just one company, just one guy. I can’t change all of Flint. ...That’s when I started to understand the heart and soul of this city.”

So he created a fund to help finance the dreams of others. "I'm in a spot where I can give back," he said.

Now, as CEO of Skypoint Ventures LLC, Hagerman emphasizes that he’s just one piece of what’s happening in town. The University of Michigan-Flint is growing. A?culinary institute is opening soon. A restored theater is a point of pride. The water crisis continues to be a priority that requires bottled water in parts of the city, and ongoing care for affected children.

"We want help. We need help," Mayor Weaver said. "But we want to be part of our own recovery."

'A million wrong mistakes'

"Everyone is walking around with ideas like lottery tickets," said David Ollila, 49, an accomplished inventor who left Marquette to be?president and chief innovation officer at Skypoint. "You can come in, share your idea and move forward or not. We have a team to help level the playing field. You can come in with $0 and a concept and explore."

Skypoint?has created a?$1.5 million annual budget for?100K Ideas, a nonprofit idea factory, where regular people come in to pitch their ideas – in tech, retail, service. It's also?investing smaller amounts of money in more people and staying with them and providing ongoing support.?

"These are the unusual suspects," Ollila?said. "You exclude people from participation when you have to wait for four people from an Ivy League school that do a business plan and win a competition and launch a business. That is actually not how any business gets started."

This is Heartland-style investing, Hagerman said. "We're a maker place."

Think of 100K Ideas as an extraction tool, he?said. "I made a million wrong mistakes. You're going to make a bunch, just learn from them. Don't worry about it. Don't let your ego get in your way. And don't make a mistake of betting the farm. Make small bets and compartmentalize risk. Hard work over time is the answer."

'You see the heart'

One of the buildings Hagerman helped transformed includes a district headquarters for U.S. Rep. Dan Kildee.

"Thousands of people here have jobs because Phil Hagerman was willing to take a risk on his own idea," Kildee said. "He didn't take that wealth that he generated and go live on the?beach. He bought?old beat-up buildings in downtown Flint and turned them into amazing spaces. He is making a connection between our past and our future in a way that's really important.?He didn't leave Flint behind when he could have. That sends a pretty strong message."

Between charitable gifts and business investments, Hagerman has put more than $50 million?into Flint.

Kildee, who has worked to bring?clean water for families and rid?urban blight from?the district, said, "Flint is a special place, not because of the bricks and the buildings. It's the people. We have a toughness about us. And pride."

These days, the smart money is on Flint.

"You see what's happening, you see the heart," Hagerman said, "and you change the narrative."